Cash bonuses paid to securities industry employees in New York are projected to rise by 8 percent to $20 billion during this year’s bonus season, according to a report issued by State Comptroller Thomas DiNapoli.
Profits for brokerage firms in 2012 were $23.9 billion, three times the $7.7 billion earned in 2011. 2012 was one of the most profitable years on record for the securities industry.
Since the economic crisis in 2008, the workforce has shrunk by 10 percent. From December 2011 to December 2012, the workforce shrank by 1,000 jobs. DiNapoli expects Wall Street to continue to shrink.
“Wall Street is still in transition, but it is slowly adjusting to changes in its economic and regulatory environment,” DiNapoli said in a statement. “Profits and bonuses rebounded in 2012, but the industry is still restructuring. Despite its smaller size, the securities industry is still a very important part of the New York City and New York state economies.”
Firms are now paying a smaller share of bonuses in the current year, deferring bonuses for future years to reduce volatility in tax payments. In response to the fiscal cliff, a larger share of bonuses was paid in December 2012 to avoid higher federal tax rates scheduled to take effect in 2013.
I would be more excited if they took the pile of money they are sitting on and hoarding and used it to CREATE JOBS. Wasn’t that the idea? Give the job creators all the money they could possibly want and they would make it rain jobs. How’s that working for everyone? If they won’t do hold up their end of the bargain – maybe they need a long soak in a tax tub. At least it would help with the deficit and maybe the government could create jobs fixing our infrastructure.